Behold! NAOS Finance Product Roadmap

NAOS Finance
NAOS Finance — Official Publications
4 min readMay 10, 2021

Many in our community have been rightfully asking us for our product roadmap. Given NAOS’ unique business model, we wanted to gain more visibility on the workflow of our real-world asset partners before formalizing our product roadmap.

We apologize for the delay but without further ado, we are super excited to share our plan!

The NAOS Finance Protocol

NAOS Finance facilitates the borrowing of crypto assets by using real-world assets as collateral. In order to connect the assets with the funding, we designed the NAOS Protocol to comprise “Formation” (liquidity) and “Galaxy” (lending) protocols.

Our team has been working extremely hard to integrate DeFi and TradFi, and has made significant progress in our collaboration with MakerDao as announced last week here. After firming up the collaboration framework across our partners, we are now announcing the product roadmap with high confidence in timely delivery.

  • Formation testnet launch — Q2 2021
  • Complete Formation contract audit — Q2 2021
  • Formation mainnet launch — Q3 2021
  • Galaxy testnet launch — Q3 2021
  • Complete Galaxy contract audit — Q3 2021
  • Galaxy mainnet launch — Q3 2021
  • NAOS Protocol (Formation + Galaxy) mainnet launch — Q3 2021
  • Complete fiat/crypto on/off-ramp integration — Q3 2021
  • Protocol integration with Binance Smart Chain — Q3 2021
  • Funding real-world assets — Q4 2021

The Liquidity Protocol: Formation by NAOS Finance

In addition to working with all major lending protocols for sources of lending capital, NAOS is designed from day one to be a self-sufficient lending protocol. We were inspired by Alchemix’s incentive design and modified it for our lending use case:

  • Deposit Stable Coins (DAI/USDC/USDT) in Vault to borrow nUSD (NAOS Stable Coin pegged to USD)
  • Borrow nUSD with minimum 200% collateralization ratio
  • Deposited Stable Coins are to be routed to vault to generate yield
  • Yield is harvested from the vault and pays down the depositor’s debt
  • Stable Coins and nUSD are treated 1:1 for repayment and liquidation
  • If the depositor has not borrowed nUSD, the yield will increase nUSD borrow limit
  • As Formation pays down the debt, you can withdraw deposits in the amount up to reaching the 200% collateralization ratio
  • You can repay a portion or all of the debt with nUSD or Stable Coins in order to unlock the collateral
  • Formation will repay your nUSD debt by using the Stable Coins from the collateral if you wish to liquidate a portion or all of the collateral

secret code is here: NAOSFOREVER

The Lending Protocol: Galaxy by NAOS Finance

Galaxy is the conduit between real-world assets and DeFi liquidity, and the protocol is designed to work behind the scenes. Here, we offer a sneak peek into the process:

  • Borrower submits loan application through the portal with required documentation
  • Application is reviewed by seasoned specialists and the assets undergo a comprehensive due diligence process
  • The approved application enters Galaxy, and the asset is tokenized into NFT and deposited into a trust
  • The trust is managed by an independent third-party, and the asset is kept isolated from the borrowers until debt obligations are met
  • The trust issues ERC-20 Tokens representing fractional ownership of the value of the trust, which are then deposited into the balance sheet of the lending protocols in exchange for the equivalent amount of stable coins
  • The stable coins are then converted into fiat, so the borrower will never have to deal with crypto assets
  • The liquidity generated from Formation will go directly into the Beta Pool, which serves as the insurance pool for the asset in case of default

We’re rolling out the entire protocol in sub-units in the coming weeks, allowing our community members to ease into this relatively complex system and to provide feedback. Please share any thoughts and suggestions to help us optimize the product in 👉our Discord suggestion channel. We’d love to hear from you!

About NAOS Finance

NAOS Finance is a DeFi lending protocol allowing lenders and SME borrowers to facilitate permissionless and borderless loaning/borrowing transactions on the blockchain. Built on Ethereum, our platform lets users tokenize real-world assets and subsequent lending.

We operate compliantly and legally in top markets around the globe, maintaining safety as a top priority and fostering enhanced trust in the lending/borrowing process.

To remain informed on everything about our project, be sure to visit our website and join the family by following our social media platforms:

Website | Whitepaper | Telegram Announcements Channel | Telegram Community | Discord | Twitter